Record second-quarter M&A and Other Advisory operating revenue of
$233 million, up 7% from second-quarter 2013; record first-half
operating revenue of $472 million, up 39% from first-half 2013

Record second-quarter Asset Management operating revenue of $286
million, up 18% from second-quarter 2013; record first-half operating
revenue of $548 million, up 14% from first-half 2013

Record assets under management of $205 billion as of June 30, 2014,
up 25% from June 30, 2013, and up 8% from March 31, 2014. Net inflows
of $4.7 billion for second-quarter 2014

Return of capital to shareholders totaling $349 million3
in the first half of 2014

($ in millions, except

per share data and AUM)

Quarter EndedJune 30,

Six Months EndedJune 30,

2014

2013

%’14-’13

2014

2013

%’14-’13

As Adjusted1,2

Operating revenue

$571

$511

12%

$1,111

$925

20%

Financial Advisory

$281

$263

7%

$556

$432

29%

Asset Management

$286

$243

18%

$548

$483

14%

Net income

$85

$60

43%

$167

$97

72%

Diluted net income per share

$0.64

$0.45

42%

$1.25

$0.73

71%

U.S. GAAP

Net income

$85

$31

$166

$47

Diluted net income per share

$0.64

$0.24

$1.25

$0.36

Supplemental Data

Quarter-end AUM($ in billions)

$205

$163

25%

Average AUM($ in billions)

$199

$168

18%

$192

$169

13%

Note: Endnotes are on page 13 of this release. A reconciliation of
adjusted GAAP to U.S. GAAP is on page 20.

Lazard Ltd (NYSE: LAZ) today reported record second-quarter operating
revenue1 of $571 million for the quarter ended June 30, 2014.
Net income, as adjusted1, was $85 million, or $0.64 per share
(diluted) for the quarter.

Record first-half 2014 operating revenue1 of $1,111 million
resulted in net income, as adjusted1, of $167 million, or
$1.25 per share (diluted).

Second-quarter 2014 net income on a U.S. GAAP basis was $85 million, or
$0.64 (diluted) per share. First-half 2014 net income on a U.S. GAAP
basis was $166 million, or $1.25 (diluted) per share. A reconciliation
of our U.S. GAAP results to the adjusted results is presented on page 20
of this press release.

“Both of our businesses performed well in the second quarter and first
half of the year,” said Kenneth M. Jacobs, Chairman and Chief Executive
Officer of Lazard.

“We are building shareholder value as we manage Lazard with the same
rigor that we apply to our work for clients,” said Matthieu Bucaille,
Chief Financial Officer of Lazard. “We remain focused on our 2014
financial targets as we continue to invest in our businesses and
maintain discipline on expenses.”

Financial Advisory operating revenue was $281 million in the
second-quarter of 2014, 7% higher than the second quarter of 2013.

Strategic Advisory operating revenue was a second-quarter record of $260
million, 8% higher than the second quarter of 2013, primarily driven by
a 7% increase in M&A and Other Advisory revenue.

During the second quarter of 2014, Lazard remained engaged in highly
visible, complex M&A transactions and other strategic advisory
assignments, including cross-border transactions, distressed asset
sales, and capital structure and sovereign advisory, in the Americas,
Europe and Asia Pacific.

Among the major M&A transactions that were completed during the second
quarter of 2014 were the following (clients are in italics): Anheuser-Busch
InBev’s $5.8 billion acquisition of Oriental Brewery; Vivendi’s €4.2
billion sale of its 53% interest in Maroc Telecom; Carrefour’s creation
of CARMILA, a company valued at €2.7 billion, formed through the
contribution of 45 of its shopping malls and the acquisition of 126
malls from Klépierre; and Oil States International’s $3 billion
spin-off of Civeo.

Our Sovereign Advisory business remained active in worldwide
assignments, including: certain privatizations in Greece and Slovenia;
the Hellenic Financial Stability Fund on the recapitalization of
the four Greek systemic banks; the Arab Republic of Egypt and the
Republic of Cyprus on various financial matters; and Alliance Bank
on its restructuring and divestiture by Kazakhstan’s sovereign wealth
fund Samruk-Kazyna.

Capital Structure Advisory continued to provide advice regarding balance
sheet issues to public, private and sovereign clients globally,
including: the U.S. Department of the Treasury in connection with
its sale of 95 million Ally Financial common shares in an IPO for
proceeds of approximately $2.4 billion; B&M European Value Retail on
its £1.2 billion IPO; Cerved Information Solutions on its€428
million IPO; and Daily Mail & General Trust on the £387
million IPO of Zoopla Property Group.

Restructuring operating revenue of $21 million was 10% lower than the
second quarter of 2013. Restructuring revenue continues to be generally
in line with the industry-wide low level of corporate restructuring
activity. Lazard remains the leader in global completed restructurings
(source: Thomson Reuters). During and since the second quarter of 2014
we have been engaged in many of the most highly visible and complex
restructuring and debt advisory assignments, including: the Official
Committee of Retirees with respect to the City of Detroit; the Official
Committee of Unsecured Creditors of Energy Future Holdings, OGX
Petróleo e Gás Participações and USEC in their Chapter 11 or
similar bankruptcy restructurings; and Groupe Partouche, Mercator,
Pescanova and Vivarte in connection with their debt
restructurings.

Please see a more complete list of M&A transactions on which Lazard
advised in the second quarter, or continued to advise or completed since
June 30, 2014, as well as Capital Structure Advisory, Sovereign Advisory
and Restructuring assignments, on pages 8-12 of this release.

First Half

Financial Advisory operating revenue was a first-half record of $556
million, 29% higher than the first half of 2013.

Strategic Advisory operating revenue was a first-half record of $505
million, 35% higher than the first half of 2013, primarily driven by a
39% increase in M&A and Other Advisory revenue.

Lazard advised or continues to advise on a number of significant and
complex M&A transactions announced in the first six months of 2014,
including: AT&T’s $67.1 billion acquisition of DIRECTV; GlaxoSmithKline
on its three-part transaction with Novartis in consumer, oncology and
vaccines; Vivendi’s €17.0 billion sale of SFR to Numericable; General
Electric’s $16.9 billion acquisition of Alstom’s Thermal, Renewables
and Grid businesses; and Pepco’s $12.2 billion sale to Exelon.

Restructuring operating revenue was $51 million for the first half of
2014, 9% lower than the first half of 2013.

Asset Management

Second Quarter

Asset Management operating revenue was a second-quarter record of $286
million, 18% higher than the second quarter of 2013.

Management fees of $258 million were a quarterly record, 18% higher than
the second quarter of 2013, primarily reflecting the change in average
AUM, and 8% higher than the first quarter of 2014. Incentive fees during
the period were $16 million, substantially unchanged from the second
quarter of 2013.

Average AUM for the second quarter of 2014 was a record $199 billion,
18% higher than average AUM in the second quarter of 2013, and 7% higher
than the first quarter of 2014.

AUM as of June 30, 2014, was a record $205 billion, a 25% increase from
the second quarter of 2013. AUM increased 8% from March 31, 2014, driven
by market appreciation and net inflows of $4.7 billion. The net inflows
were driven by a broad range of equity and fixed-income strategies in
all our major distribution channels around the world.

First Half

Asset Management operating revenue was a first-half record of $548
million, 14% higher than the first half of 2013.

Management fees were a first-half record of $497 million, 14% higher
than the first half of 2013, primarily reflecting the change in average
AUM. Incentive fees were $26 million in the first half of 2014, compared
to $25 million in the first half of 2013.

Average AUM for the first half of 2014 was a record $192 billion, 13%
higher than the first half of 2013. Net inflows were $5.6 billion for
the first half of 2014.

OPERATING EXPENSES

Compensation and Benefits

In managing compensation and benefits expense, we focus on annual
awarded compensation (cash compensation and benefits plus deferred
incentive compensation with respect to the applicable year, net of
estimated future forfeitures and excluding charges). We believe annual
awarded compensation reflects the actual annual compensation cost more
accurately than the GAAP measure of compensation cost, which includes
applicable-year cash compensation and the amortization of deferred
incentive compensation principally attributable to previous years’
deferred compensation. We believe that by managing our business using
awarded compensation with a consistent deferral policy, we can better
manage our compensation costs, increase our flexibility in the future
and build shareholder value over time.

For the second quarter of 2014, we accrued compensation expense at an
adjusted GAAP compensation ratio of 58.8%. This resulted in $336 million
of adjusted GAAP compensation and benefits expense1, 9%
higher than the second quarter of 2013, excluding charges in the 2013
period2.

For the first half of 2014, we accrued compensation expense at an
adjusted GAAP compensation ratio of 58.8%. This resulted in $654 million
of adjusted GAAP compensation and benefits expense1, 18%
higher than the first half of 2013, excluding charges in the 2013 period2.

The adjusted GAAP compensation ratios for the second quarter and first
half of 2014 were consistent with the full-year 2013 ratio and compared
to 60.0% for the second quarter and first half of 2013.

Our goal remains to grow awarded compensation expense at a slower rate
than revenue growth, and to achieve a compensation-to-operating revenue
ratio over the cycle in the mid- to high-50s percentage range on both an
awarded and adjusted GAAP basis, with consistent deferral policies.

Non-Compensation Expense

For the second quarter of 2014, adjusted non-compensation expense1
was $111 million, 6% higher than the second quarter of 2013, excluding
charges in the 2013 period2, and reflecting increased
activity levels and investment in our businesses. The ratio of adjusted
non-compensation expense to operating revenue for the second quarter of
2014 was 19.5%, compared to 20.5% for the second quarter of 2013.

For the first half of 2014, adjusted non-compensation expense1
was $214 million, 5% higher than the first half of 2013, excluding
charges in the 2013 period2. The increase in first-half 2014
non-compensation expense compared to a 20% increase in operating revenue
over the same period. The ratio of adjusted non-compensation expense to
operating revenue was 19.3%, compared to 22.1% for the first half of
2013.

Our goal remains to achieve an adjusted non-compensation
expense-to-operating revenue ratio over the cycle of 16% to 20%.

TAXES

The provision for taxes, on an adjusted basis1, was $22
million for the second quarter of 2014 and $44 million for the first
half of 2014. The effective tax rate on the same basis was 20.7% for the
second quarter and 20.9% for the first half of 2014, compared to 24.3%
and 22.3% for the respective 2013 periods.

For the second quarter of 2014, Lazard returned $124 million to
shareholders, which included: $37 million in dividends; $86 million in
share repurchases of our Class A common stock; and $1 million in
satisfaction of employee tax obligations in lieu of share issuances upon
vesting of equity grants.

For the first half of 2014, Lazard returned $349 million to
shareholders, which included: $73 million in dividends; $193 million in
share repurchases of our Class A common stock; and $83 million in
satisfaction of employee tax obligations in lieu of share issuances upon
vesting of equity grants.

As of June 30, 2014, we had repurchased 4.1 million shares at an average
price of $46.83 per share during the first half of the year. In line
with our objectives, these repurchases have more than offset the
potential dilution from our 2013 year-end equity-based compensation
awards, net of estimated forfeitures and tax withholding to be paid in
cash in lieu of share issuance.

On July 23, 2014, Lazard declared a quarterly dividend of $0.30 per
share on its outstanding common stock. The dividend is payable on August
15, 2014, to stockholders of record on August 4, 2014.

Lazard’s financial position remains strong. As of June 30, 2014, our
cash and cash equivalents were $684 million, and stockholders’ equity
related to Lazard’s interests was $500 million.

CONFERENCE CALL

Lazard will host a conference call at 8:00 a.m. EDT on Thursday, July
24, 2014, to discuss the company’s financial results for the second
quarter and first half of 2014. The conference call can be accessed via
a live audio webcast available through Lazard’s Investor Relations
website at www.lazard.com,
or by dialing 1 (888) 254-2827 (U.S. and Canada) or +1 (913) 312-1472
(outside of the U.S. and Canada), 15 minutes prior to the start of the
call.

A replay of the conference call will be available by 10:00 a.m. EDT on
Thursday, July 24, 2014, via the Lazard Investor Relations website, or
by dialing 1 (888) 203-1112 (U.S. and Canada) or +1 (719) 457-0820
(outside of the U.S. and Canada). The replay access code is 2056069.

ABOUT LAZARD

Lazard, one of the world's preeminent financial advisory and asset
management firms, operates from 43 cities across 27 countries in North
America, Europe, Asia, Australia, Central and South America. With
origins dating to 1848, the firm provides advice on mergers and
acquisitions, strategic matters, restructuring and capital structure,
capital raising and corporate finance, as well as asset management
services to corporations, partnerships, institutions, governments and
individuals. For more information on Lazard, please visit www.lazard.com.

Cautionary Note Regarding Forward-Looking Statements:

This press release contains “forward-looking statements.” In some
cases, you can identify these statements by forward-looking words such
as “may”, “might”, “will”, “should”, “expect”, “plan”, “anticipate”,
“believe”, “estimate”, “predict”, “potential”, “target,” “goal”,or
“continue”, and the negative of these terms and other comparable
terminology. These forward-looking statements are not historical facts
but instead represent only our expectations regarding future results or
events, many of which, by their nature, are inherently uncertain and
outside of our control. Although we believe the expectations reflected
in the forward-looking statements are reasonable, we cannot guarantee
future results, level of activity, performance or achievements. There
are important factors that could cause our actual results, level of
activity, performance or achievements to differ materially from the
results, level of activity, performance or achievements expressed or
implied by these forward-looking statements.

These factors include, but are not limited to, those discussed in our
Annual Report on Form 10-K under Item 1A “Risk Factors,” and also
disclosed from time to time in our reports on Forms 10-Q and 8-K,
including the following:

A decline in general economic conditions or the global financial
markets;

A decline in our revenues, for example due to a decline in overall
mergers and acquisitions (M&A) activity, our share of the M&A market
or our assets under management (AUM);

Losses caused by financial or other problems experienced by third
parties;

Losses due to unidentified or unanticipated risks;

A lack of liquidity, i.e., ready access to funds, for use in our
businesses; and

Competitive pressure on our businesses and on our ability to retain
and attract employees at current compensation levels.

Neither we nor any other person assumes responsibility for the
accuracy or completeness of any of these forward-looking statements. You
should not rely upon forward-looking statements as predictions of future
events. We are under no duty to update any of these forward-looking
statements after the date of this release to conform our prior
statements to actual results or revised expectations and we do not
intend to do so.

Lazard Ltd is committed to providing timely and accurate information
to the investing public, consistent with our legal and regulatory
obligations. To that end, Lazard and its operating companies use their
websites to convey information about their businesses, including the
anticipated release of quarterly financial results, quarterly financial,
statistical and business-related information, and the posting of updates
of assets under management in various hedge funds and mutual funds and
other investment products managed by Lazard Asset ManagementLLC
and its subsidiaries. Investors can link to Lazard and its operating
company websites through www.lazard.com.

FINANCIAL ADVISORY ASSIGNMENTS

Mergers and Acquisitions (Completed in the second
quarter of 2014)

Among the large, publicly announced M&A Advisory transactions or
assignments completed during the second quarter of 2014 on which Lazard
advised were the following:

Anheuser-Busch InBev’s $5.8 billion acquisition of Oriental
Brewery

Vivendi’s €4.2 billion sale of its 53% interest in Maroc Telecom

Carrefour’s creation of CARMILA, a company valued at €2.7
billion, formed through the contribution of 45 of its shopping malls
and the acquisition of 126 malls from Klépierre

National Asset Management Agency’s sale of a portfolio of real
estate loans with a par value of £4.5 billion to affiliates of Cerberus

Ceva Santé Animale’s reorganization of the share capital
controlled by management with the entry of new investors Temasek and
CDH

Fieldglass in its sale to SAP

Charterhouse Capital’s sale of Nocibé to DOUGLAS Group

Antar Trust’s sale of a 55% stake in Longview Partners to
Northill Capital

Icon Infrastructure and PSP Investments on the sale of a
stake in Compañia Logistica de Hidrocarburos to Global Infrastructure
Partners

Blackstone’s acquisition of a 20% stake in Versace

Mergers and Acquisitions (Announced)

Among the ongoing, large, publicly announced M&A transactions and
assignments on which Lazard advised during or since the 2014 second
quarter, or completed since June 30, 2014, are the following:

AT&T’s $67.1 billion acquisition of DIRECTV

Lafarge’s €29.6 billion merger of equals with Holcim

Reynolds American (RAI) in its $27.4 billion acquisition of
Lorillard and $7.1 billion sale of selected brands and assets to
Imperial Tobacco, and the $4.7 billion investment in RAI by British
American Tobacco

GlaxoSmithKline's three-part transaction with Novartis
involving the sale of its Oncology business for up to $16.0 billion;
acquisition of Novartis’ global Vaccines business for up to $7.1
billion; and creation of a £6.5 billion-revenue Consumer Healthcare
joint venture in which GSK will hold a 63.5% equity interest

Restructuring and debtor or creditor advisory assignments completed
during the second quarter of 2014 on which Lazard advised include: Midwest
Generation'spass-through certificateholders in connection
with Edison Mission Energy's restructuring and sale to NRG; Quiznos in
connection with its Chapter 11 financial restructuring; and Mercator
and Pescanova in connection with their debt restructurings.

Notable Chapter 11 or similar bankruptcies, on which Lazard advised
debtors or creditors, or related parties, during or since the second
quarter of 2014, are the following:

1 A non-U.S. GAAP measure. See attached financial schedules
and related notes for a detailed explanation of adjustments to
corresponding U.S. GAAP results. We believe that presenting our results
on an adjusted basis, in addition to the U.S. GAAP results, is the most
meaningful and useful way to compare our operating results across
periods.

2 Second quarter 2013 results exclude pre-tax charges of $27
million of compensation expense and $11 million of non-compensation
expense relating to cost saving initiatives. First half 2013 results
exclude pre-tax charges of $51 million of compensation expense and $13
million of non-compensation expense relating to cost saving initiatives.

3 In the first half of 2014, Lazard returned $349 million to
shareholders, which included: $73 million in dividends; $193 million in
share repurchases of our Class A common stock; and $83 million in
satisfaction of employee tax obligations in lieu of share issuances upon
vesting of equity grants.

LAZ-EPE

LAZARD LTD

SELECTED SUMMARY FINANCIAL INFORMATION (a)

(Non-GAAP - unaudited)

Three Months Ended

% Change From

June 30,

March 31,

June 30,

March 31,

June 30,

($ in thousands, except per share data)

2014

2014

2013

2014

2013

Revenues:

Financial Advisory

M&A and Other Advisory

$233,313

$239,144

$218,488

(2%)

7%

Capital Raising

26,574

6,216

21,583

NM

23%

Strategic Advisory

259,887

245,360

240,071

6%

8%

Restructuring

20,882

30,136

23,236

(31%)

(10%)

Total

280,769

275,496

263,307

2%

7%

Asset Management

Management fees

257,507

239,523

217,700

8%

18%

Incentive fees

15,774

10,378

15,849

52%

(0%)

Other

12,374

12,400

9,512

(0%)

30%

Total

285,655

262,301

243,061

9%

18%

Corporate

4,613

2,427

4,993

90%

(8%)

Operating revenue (b)

$571,037

$540,224

$511,361

6%

12%

Expenses:

Compensation and benefits expense (c)

$335,920

$317,791

$306,817

6%

9%

Ratio of compensation to operating revenue

58.8%

58.8%

60.0%

Non-compensation expense (d)

$111,479

$103,001

$104,998

8%

6%

Ratio of non-compensation to operating revenue

19.5%

19.1%

20.5%

Earnings:

Earnings from operations (e)

$123,638

$119,432

$99,546

4%

24%

Operating margin (f)

21.7%

22.1%

19.5%

Net income (g)

$85,366

$81,275

$59,867

5%

43%

Diluted net income per share

$0.64

$0.61

$0.45

5%

42%

Diluted weighted average shares

133,575,652

134,025,991

132,464,296

(0%)

1%

Effective tax rate (h)

20.7%

21.1%

24.3%

This presentation includes non-U.S. GAAP ("non-GAAP") measures. Our
non-GAAP measures are not meant to be considered in isolation or as a
substitute for the corresponding U.S. GAAP measures, and should be read
only in conjunction with our consolidated financial statements prepared
in accordance with U.S. GAAP. For a detailed explanation of the
adjustments made to the corresponding U.S. GAAP measures, see
Reconciliation of U.S. GAAP to Selected Summary Financial Information
and Notes to Financial Schedules.

LAZARD LTD

SELECTED SUMMARY FINANCIAL INFORMATION (a)

(Non-GAAP - unaudited)

Six Months Ended June 30,

($ in thousands, except per share data)

2014

2013

% Change

Revenues:

Financial Advisory

M&A and Other Advisory

$472,457

$339,244

39%

Capital Raising

32,790

36,269

(10%)

Strategic Advisory

505,247

375,513

35%

Restructuring

51,018

56,256

(9%)

Total

556,265

431,769

29%

Asset Management

Management fees

497,030

437,692

14%

Incentive fees

26,152

24,643

6%

Other

24,774

20,434

21%

Total

547,956

482,769

14%

Corporate

7,040

10,527

(33%)

Operating revenue (b)

$1,111,261

$925,065

20%

Expenses:

Compensation and benefits expense (c)

$653,711

$555,039

18%

Ratio of compensation to operating revenue

58.8%

60.0%

Non-compensation expense (d)

$214,480

$204,579

5%

Ratio of non-compensation to operating revenue

19.3%

22.1%

Earnings:

Earnings from operations (e)

$243,070

$165,447

47%

Operating margin (f)

21.9%

17.9%

Net income (g)

$166,641

$97,030

72%

Diluted net income per share

$1.25

$0.73

71%

Diluted weighted average shares

133,800,822

132,639,928

1%

Effective tax rate (h)

20.9%

22.3%

This presentation includes non-U.S. GAAP ("non-GAAP") measures. Our
non-GAAP measures are not meant to be considered in isolation or as a
substitute for the corresponding U.S. GAAP measures, and should be read
only in conjunction with our consolidated financial statements prepared
in accordance with U.S. GAAP. For a detailed explanation of the
adjustments made to the corresponding U.S. GAAP measures, see
Reconciliation of U.S. GAAP to Selected Summary Financial Information
and Notes to Financial Schedules.

LAZARD LTD

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(U.S. GAAP)

Three Months Ended

% Change From

June 30,

March 31,

June 30,

March 31,

June 30,

($ in thousands, except per share data)

2014

2014

2013

2014

2013

Total revenue

$582,605

$549,353

$510,716

6%

14%

Interest expense

(15,709)

(15,953)

(20,311)

Net revenue

566,896

533,400

490,405

6%

16%

Operating expenses:

Compensation and benefits

345,924

321,565

331,131

8%

4%

Occupancy and equipment

28,367

28,312

39,738

Marketing and business development

20,894

19,233

25,377

Technology and information services

21,954

23,487

20,134

Professional services

14,120

7,591

10,706

Fund administration and outsourced services

16,002

15,454

15,388

Amortization of intangible assets related to acquisitions

706

1,220

1,004

Other

10,709

9,358

5,989

Subtotal

112,752

104,655

118,336

8%

(5%)

Provision pursuant to tax receivable agreement

9,240

-

-

Operating expenses

467,916

426,220

449,467

10%

4%

Operating income

98,980

107,180

40,938

(8%)

NM

Provision (benefit) for income taxes

13,071

21,751

9,017

(40%)

45%

Net income

85,909

85,429

31,921

1%

NM

Net income attributable to noncontrolling interests

717

4,587

568

Net income attributable to Lazard Ltd

$85,192

$80,842

$31,353

5%

NM

Attributable to Lazard Ltd Common Stockholders:

Weighted average shares outstanding:

Basic

123,116,776

121,776,207

121,759,982

1%

1%

Diluted

133,575,652

134,025,991

132,464,296

(0%)

1%

Net income per share:

Basic

$0.69

$0.66

$0.26

5%

NM

Diluted

$0.64

$0.61

$0.24

5%

NM

LAZARD LTD

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(U.S. GAAP)

Six Months Ended

June 30,

June 30,

($ in thousands, except per share data)

2014

2013

% Change

Total revenue

$1,131,958

$932,774

21%

Interest expense

(31,662)

(40,466)

Net revenue

1,100,296

892,308

23%

Operating expenses:

Compensation and benefits

667,489

608,870

10%

Occupancy and equipment

56,679

69,042

Marketing and business development

40,127

43,569

Technology and information services

45,441

43,114

Professional services

21,711

19,319

Fund administration and outsourced services

31,456

28,853

Amortization of intangible assets related to acquisitions

1,926

1,881

Other

20,067

15,125

Subtotal

217,407

220,903

(2%)

Provision pursuant to tax receivable agreement

9,240

-

Operating expenses

894,136

829,773

8%

Operating income

206,160

62,535

NM

Provision for income taxes

34,822

12,965

NM

Net income

171,338

49,570

NM

Net income attributable to noncontrolling interests

5,304

2,857

Net income attributable to Lazard Ltd

$166,034

$46,713

NM

Attributable to Lazard Ltd Common Stockholders:

Weighted average shares outstanding:

Basic

122,446,492

119,734,093

2%

Diluted

133,800,822

132,639,928

1%

Net income per share:

Basic

$1.36

$0.39

NM

Diluted

$1.25

$0.36

NM

LAZARD LTD

UNAUDITED CONDENSED CONSOLIDATED

STATEMENT OF FINANCIAL CONDITION

(U.S. GAAP)

June 30,

December 31,

($ in thousands)

2014

2013

ASSETS

Cash and cash equivalents

$684,491

$841,482

Deposits with banks

322,280

244,879

Cash deposited with clearing organizations and other segregated cash

67,661

62,046

Receivables

544,325

512,675

Investments

538,924

478,105

Goodwill and other intangible assets

368,542

363,877

Other assets

553,253

508,073

Total Assets

$3,079,476

$3,011,137

LIABILITIES & STOCKHOLDERS' EQUITY

Liabilities

Deposits and other customer payables

$401,002

$275,434

Accrued compensation and benefits

420,872

523,063

Senior debt

1,048,350

1,048,350

Other liabilities

642,551

534,292

Total liabilities

2,512,775

2,381,139

Commitments and contingencies

Stockholders' equity

Preferred stock, par value $.01 per share

-

-

Common stock, par value $.01 per share

1,298

1,291

Additional paid-in capital

612,952

737,899

Retained earnings

285,476

203,236

Accumulated other comprehensive loss, net of tax

(127,480)

(133,004)

Subtotal

772,246

809,422

Class A common stock held by subsidiaries, at cost

(272,184)

(249,213)

Total Lazard Ltd stockholders' equity

500,062

560,209

Noncontrolling interests

66,639

69,789

Total stockholders' equity

566,701

629,998

Total liabilities and stockholders' equity

$3,079,476

$3,011,137

LAZARD LTD

ASSETS UNDER MANAGEMENT ("AUM")

(unaudited)

($ in millions)

As of

Variance

June 30,

March 31,

December 31,

2014

2014

2013

Qtr to Qtr

YTD

Equity:

Emerging Markets

$52,994

$47,679

$47,450

11.1%

11.7%

Global

37,089

35,359

35,521

4.9%

4.4%

Local

32,216

30,467

31,232

5.7%

3.2%

Multi-Regional

45,075

41,754

39,859

8.0%

13.1%

Total Equity

167,374

155,259

154,062

7.8%

8.6%

Fixed Income:

Emerging Markets

13,319

10,230

9,048

30.2%

47.2%

Global

3,865

3,437

3,164

12.5%

22.2%

Local

3,476

3,638

3,507

(4.5%)

(0.9%)

Multi-Regional

10,604

11,073

11,155

(4.2%)

(4.9%)

Total Fixed Income

31,264

28,378

26,874

10.2%

16.3%

Alternative Investments

4,628

4,494

4,690

3.0%

(1.3%)

Private Equity

1,127

1,156

1,151

(2.5%)

(2.1%)

Cash Management

132

166

147

(20.5%)

(10.2%)

Total AUM

$204,525

$189,453

$186,924

8.0%

9.4%

Three Months Ended June 30,

Six Months Ended June 30,

2014

2013

2014

2013

AUM - Beginning of Period

$189,453

$171,965

$186,924

$167,060

Net Flows

4,709

(4,127)

5,557

(5,122)

Market and foreign exchange

appreciation (depreciation)

10,363

(4,549)

12,044

1,351

AUM - End of Period

$204,525

$163,289

$204,525

$163,289

Average AUM

$198,537

$167,783

$192,211

$169,370

% Change in average AUM

18.3%

13.5%

Note: Average AUM generally represents the average of the monthly ending
AUM balances for the period.

LAZARD LTD

RECONCILIATION OF U.S. GAAP TO SELECTED SUMMARY FINANCIAL
INFORMATION (a)

(unaudited)

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

($ in thousands, except per share data)

2014

2014

2013

2014

2013

Operating Revenue

Net revenue - U.S. GAAP Basis

$566,896

$533,400

$490,405

$1,100,296

$892,308

Adjustments:

Revenue related to noncontrolling interests (i)

(2,512)

(6,266)

(2,458)

(8,778)

(6,780)

Gain related to Lazard Fund Interests ("LFI") and other similar
arrangements

(8,906)

(2,626)

3,477

(11,532)

(248)

Interest expense

15,559

15,716

19,937

31,275

39,785

Operating revenue, as adjusted

$571,037

$540,224

$511,361

$1,111,261

$925,065

Compensation & Benefits Expense

Compensation & benefits expense - U.S. GAAP Basis

$345,924

$321,565

$331,131

$667,489

$608,870

Adjustments:

Charges pertaining to cost saving initiatives

-

-

(26,728)

-

(51,399)

Charges pertaining to LFI and other similar arrangements

(8,906)

(2,626)

3,477

(11,532)

(248)

Compensation related to noncontrolling interests (i)

(1,098)

(1,148)

(1,063)

(2,246)

(2,184)

Compensation & benefits expense, as adjusted

$335,920

$317,791

$306,817

$653,711

$555,039

Non-Compensation Expense

Non-compensation expense - Subtotal - U.S. GAAP Basis

$112,752

$104,655

$118,336

$217,407

$220,903

Adjustments:

Charges pertaining to cost saving initiatives

-

-

(11,653)

-

(13,304)

Amortization of intangible assets related to acquisitions

(706)

(1,220)

(1,004)

(1,926)

(1,881)

Non-compensation expense related to noncontrolling interests (i)

(567)

(434)

(681)

(1,001)

(1,139)

Non-compensation expense, as adjusted

$111,479

$103,001

$104,998

$214,480

$204,579

Earnings From Operations

Operating Income - U.S. GAAP Basis

$98,980

$107,180

$40,938

$206,160

$62,535

Other adjustments:

Charges pertaining to cost saving initiatives

-

-

38,381

-

64,703

Revenue related to noncontrolling interests (i)

(2,512)

(6,266)

(2,458)

(8,778)

(6,780)

Interest expense

15,559

15,716

19,937

31,275

39,785

Expenses related to noncontrolling interests (i)

1,665

1,582

1,744

3,247

3,323

Amortization of intangible assets related to acquisitions

706

1,220

1,004

1,926

1,881

Adjustment related to the provision pursuant to the tax receivable
agreement ("TRA") (h)

9,240

-

-

9,240

-

Earnings from operations, as adjusted

$123,638

$119,432

$99,546

$243,070

$165,447

Net Income attributable to Lazard Ltd

Net income attributable to Lazard Ltd - U.S. GAAP Basis

$85,192

$80,842

$31,353

$166,034

$46,713

Adjustments:

Charges pertaining to cost saving initiatives

-

-

38,381

-

64,703

Tax (benefits) allocated to adjustments (h)

-

-

(10,128)

-

(14,815)

Amount attributable to LAZ-MD Holdings

-

-

(170)

-

(442)

Adjustment for full exchange of exchangeable interests (j)

Tax adjustment for full exchange

10

(34)

(44)

(24)

(68)

Amount attributable to LAZ-MD Holdings

164

467

475

631

939

Net income, as adjusted

$85,366

$81,275

$59,867

$166,641

$97,030

Diluted net income per share:

U.S. GAAP Basis

$0.64

$0.61

$0.24

$1.25

$0.36

Non-GAAP Basis, as adjusted

$0.64

$0.61

$0.45

$1.25

$0.73

This presentation includes non-U.S. GAAP ("non-GAAP") measures. Our
non-GAAP measures are not meant to be considered in isolation or as a
substitute for comparable U.S. GAAP measures, and should be read only in
conjunction with our consolidated financial statements prepared in
accordance with U.S. GAAP. For a detailed explanation of the adjustments
made to comparable U.S. GAAP measures, see Notes to Financial Schedules.

LAZARD LTD

Notes to Financial Schedules

(a)

Selected Summary Financial Information are non-U.S. GAAP
("non-GAAP") measures. Lazard believes that presenting results and
measures on an adjusted basis in conjunction with U.S. GAAP measures
provides the most meaningful basis for comparison of its operating
results across periods. (See Reconciliation of U.S. GAAP to Selected
Summary Financial Information)

(b)

A non-GAAP measure which excludes (i) gains/losses related to the
changes in the fair value of investments held in connection with
Lazard Fund Interests and other similar deferred compensation
arrangements for which a corresponding equal amount is excluded from
compensation & benefits expense, (ii) revenue related to
non-controlling interests (see (i) below), and (iii) interest
expense primarily related to corporate financing activities. (See
Reconciliation of U.S. GAAP to Selected Summary Financial
Information)

(c)

A non-GAAP measure which excludes (i) charges/credits related to the
changes in the fair value of the compensation liability recorded in
connection with Lazard Fund Interests and other similar deferred
compensation arrangements, (ii) compensation and benefits related to
noncontrolling interests (see (i) below), and (iii) for the three
and six month periods ended June 30, 2013, charges pertaining to the
implementation of cost saving initiatives (see (g) below). (See
Reconciliation of U.S. GAAP to Selected Summary Financial
Information)

(d)

A non-GAAP measure which excludes (i) amortization of intangible
assets related to acquisitions, (ii) expenses related to
noncontrolling interests (see (i) below), (iii) for the three and
six month periods ended June 30, 2013, charges pertaining to the
implementation of cost saving initiatives (see (g) below), and (iv)
for the three and six month periods ended June 30, 2014, a provision
pursuant to the tax receivable agreement. (See Reconciliation of
U.S. GAAP to Selected Summary Financial Information)

(e)

A non-GAAP measure which excludes (i) amortization of intangible
assets related to acquisitions, (ii) interest expense primarily
related to corporate financing activities, (iii) revenue and
expenses related to noncontrolling interests (see (i) below), (iv)
for the three and six month periods ended June 30, 2013, charges
pertaining to the implementation of cost saving initiatives (see (g)
below), and (v) for the three and six month periods ended June 30,
2014, a provision pursuant to the tax receivable agreement. (See
Reconciliation of U.S. GAAP to Selected Summary Financial
Information)

(f)

Represents earnings from operations as a percentage of operating
revenue, and is a non-GAAP measure. (See Reconciliation of U.S. GAAP
to Selected Summary Financial Information)

(g)

A non-GAAP measure which is adjusted to reflect the full conversion
of outstanding exchangeable interests held by members of LAZ-MD
Holdings and excludes for the three and six month periods ended June
30, 2013, charges pertaining to cost saving initiatives including
severance and benefit payments, acceleration of unrecognized
amortization of deferred incentive compensation previously granted
to individuals terminated, settlement of certain contractual
obligations, occupancy cost reduction and other non-compensation
related costs, net of applicable tax benefits (see (h) below). (See
Reconciliation of U.S. GAAP to Selected Summary Financial
Information)

(h)

Effective tax rate is a non-GAAP measure based upon the U.S. GAAP
rate with adjustments for the tax applicable to the non-GAAP
adjustments to operating income, generally based upon the effective
marginal tax rate in the applicable jurisdiction of the adjustments.
The computation is based on a quotient, the numerator of which is
the provision for income taxes of $22,300, $21,785 and $19,188 for
the three month periods ended June 30, 2014, March 31, 2014 and June
30, 2013, respectively, $44,085 and $27,849 for the six month
periods ended June 30, 2014 and 2013, respectively, and the
denominator of which is pre-tax income of $108,219, $107,180 and
$79,319 for the three month periods ended June 30, 2014, March 31,
2014 and June 30, 2013, respectively, $215,399 and $127,238 for the
six month periods ended June 30, 2014 and 2013, respectively,
exclusive of net income attributable to noncontrolling interests of
$553, $4,120 and $264 for the three month periods ended June 30,
2014, March 31, 2014 and June 30, 2013, respectively, $4,673 and
$2,360 for the six month periods ended June 30, 2014 and 2013,
respectively. Includes a provision pursuant to the tax receivable
agreement (see (d) and (e) above).

(i)

Noncontrolling interests include revenue and expenses principally
related to Edgewater, and is a non-GAAP measure. (See Reconciliation
of U.S. GAAP to Selected Summary Financial Information)

(j)

Represents a reversal of noncontrolling interests related to LAZ-MD
Holdings’ ownership of Lazard Group common membership interests and
an adjustment for Lazard Ltd entity-level taxes to affect a full
exchange of interests and excluding the adjustments noted in (g)
above.